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FTC Fires Warning Shot On International Privacy Rules

The Federal Trade Commission issued warning letters to 28 companies that claim certified participation in the Asia-Pacific Economic Cooperative Cross-Border Privacy Rules system on their websites but do not appear to have met the requirements, such as undergoing a review by an APEC-recognized Accountability Agent, to make that claim. The APEC privacy system is a regulatory initiative designed to facilitate the protection of consumer data transferred across the APEC region, consisting of 21 Pacific Rim member states, including the United States. The warning letters came the same week that the United States and European Union finalized the Privacy Shield, which assumes an active role by the FTC in enforcing U.S. companies’ claims that they comply with the Shield’s requirements for protecting personal data concerning EU residents.